Sustainable Strategies: A Blueprint for Corporate Climate Action

Human activities and the rise in greenhouse gas emissions contribute to climate change, leading to more frequent natural disasters that endanger biodiversity and future generations. To address these challenges, numerous countries deliberated on supporting the Paris Agreement at the 2021 UN Climate Change Conference. Recognizing the immediate need for action in this decade, they decided to curtail the use of coal power, among other measures. Stronger commitments from participants are now essential to limit global warming to 1.5 °C

Businesses, along with various other sources, significantly contribute to greenhouse gas emissions, thereby influencing global warming and climate changes. It is crucial for companies to actively address and mitigate the risks associated with global warming. Reducing corporate emissions not only assists in risk management but also creates opportunities for companies to gain a competitive edge by aligning with consumer preferences. Additionally, cutting energy demand, especially in production, empowers companies to lower costs, improve efficiency, and reduce emissions. Despite being major contributors to greenhouse gas emissions, there is a critical need for organized measures to effectively decrease these emissions. This involves implementing various steps to address the issue. Businesses are adopting diverse greenhouse gas emission reduction measures (ERM), and here, I have compiled fundamental mitigation steps that companies are currently implementing.

Companies are actively adopting various strategies to reduce their greenhouse gas (GHG) emissions, falling into nine distinct categories: energy, product, process, carbon capture, 6R (Reduce, Reuse, Recycle, Rethink, Refuse, Repair) & waste management, office & mobility, management, and reporting & disclosure, and compensation. These diverse approaches reflect their commitment to addressing and mitigating the impact of their emissions on global warming and climate change.

In the energy category, companies are employing diverse measures to reduce their environmental impact. They are focusing on energy production, utilizing strategies such as generating renewable energy through photovoltaic systems and implementing onsite energy storage, like installing solar panels on buildings or utilizing other renewables such as wind and biofuels. Furthermore, energy acquisition practices prioritize sourcing from renewable, clean, or low-carbon sources, including wind, solar, local biomass, or hydro, and may also involve opting for energy from low-carbon or carbon-neutral sources like geothermal, nuclear, or power plants with carbon capture and storage.

Efforts to enhance energy efficiency include increasing the efficiency of energy production and technology, such as transitioning from coal to gas, co-burning coal and/or biomass, and adopting an integrated gasification combined cycle using biogas. Companies are also investing in energy-efficient equipment and machinery, such as energy-efficient air conditioning, motion detectors, efficient lighting adjustments, and smart metering.

Creating energy awareness among employees is another vital aspect, with initiatives such as distributing energy-saving tip sheets, promoting lights-off practices, and conducting regular maintenance on energy-consuming units. Finally, energy recovery measures involve utilizing heat pumps, waste heat recovery, or integrated gasification combined cycle processes. This includes recovering waste heat from landfills, recycling blast furnace gas, and adopting integrated gasification combined cycle. These varied strategies within the energy category showcase the comprehensive approach companies are taking to align their energy practices with sustainability goals.

The product category is currently focusing on minimizing the environmental impact of the things we create. It is crucial for ongoing product development and is influencing the materials and processes involved in their production. One ongoing approach is redesigning products to reduce their environmental footprint, either through continuous modifications to the product or using recycled and renewable materials. For instance, in cement production, companies are incorporating recycled construction waste or materials like fly ash, a renewable byproduct of recycling, to contribute to making products more eco-friendly. This category is emphasizing the ongoing creation of products with a smaller environmental impact and the continuous incorporation of sustainable practices into their design and production.

Enhancements in processes are currently aiming to enhance the efficiency of how we create things. One ongoing approach is incorporating smart technologies, like automation or Internet of Things (IoT) devices, to revamp production processes continuously, making them faster and more effective. Another strategy involves ongoing upgrades of machinery to newer, energy-efficient equipment, resulting in continuous reductions in energy consumption and waste. Additionally, managing byproducts through recycling or finding alternative uses continues to contribute to sustainability. For instance, companies are continuously engaging in beneficial practices such as selling byproducts like liquid carbon dioxide and calcium bicarbonate. Considering the use of cleaner fuels, such as biofuels, instead of traditional ones, is an ongoing step towards both efficiency and environmental benefits. In simpler terms, the ongoing goal is to make processes smarter and continuously utilize cleaner, more efficient methods.

In the carbon capture category, industries are actively finding ways to catch carbon emissions, either by utilizing advanced technology or natural processes. One ongoing natural process involves forests continuously absorbing carbon dioxide during photosynthesis, aiding in reducing its impact on the environment. Certain industries, such as cement production, are continuously using technology to capture carbon dioxide and storing it underground in liquid form, continuously cutting down on carbon emissions. This ongoing effort represents a positive and continuous step toward making industries more environmentally friendly.

In the 6R & waste management category, companies are actively focusing on implementing the 6R principles: reuse, recycle, reduce, recover, redesign, and remanufacture. A substantial emphasis is continuously placed on recycling, specifically repurposing bricks from deconstructed buildings. Effective waste management continually involves proper disposal practices, such as filtering water at production sites and ensuring responsible recycling and waste disposal in the workplace. In simpler terms, the 6Rs continuously stand for finding ways to use things again, recycling, reducing waste, recovering resources, redesigning processes, and remanufacturing products for a more environmentally friendly and continuous approach.

In the "Office & mobility" category, companies are actively working to make office spaces and transportation more environmentally friendly. Communication measures involve adopting less carbon-intensive methods, such as sending emails instead of faxes and conducting online meetings. Efforts in buildings include continuous retrofitting and renovations with eco-friendly products to consistently reduce energy consumption. Mobility measures aim to continually cut emissions from business travel and commuting by opting for less carbon-intensive travel options, including implementing eco-driving practices, using electric cars, or encouraging the use of bicycles. This encompasses substituting cars with bicycles, particularly in urban areas. The overall goal is to consistently create a greener workplace and adopt eco-friendly transportation to continually reduce the environmental impact.

In the "Management" category, companies are incorporating seven measures to actively reduce carbon emissions and enhance sustainability practices. The first measure encourages ongoing low carbon behavior through internal incentives for employees, such as rewarding fewer business travels. The second measure, knowledge management, involves continuous workshops and information sharing to consistently reduce greenhouse gas emissions. Third, HR sustainability measures focus on continually incorporating sustainability within the organizational structure, including the ongoing diversification of board members. Management tools like SWOT analysis, portfolio management, and risk management are consistently used to implement reduction measures. The last three measures—investments, project management, and stakeholder management—focus on continuous adaptation to new technologies and regulations, ongoing investments in sustainability, and ongoing engagement with policymakers. For example, in project management, involving suppliers in the early stages of a project can continually include green technologies like solar panels. Financially, companies can consistently integrate emission targets into investment decisions and invest continuously in sustainable research and development. Stakeholder management involves ongoing engagement with policymakers on responses to climate change. In simple terms, it's about continually encouraging green practices among employees, utilizing effective management tools, consistently investing in sustainability, and working continuously with policymakers to reduce our impact on the environment.

In the Reporting & Disclosure category, companies are actively developing systems to manage and diminish emissions while regularly reporting on their progress. This involves establishing targets to reduce pollution and creating detailed plans to achieve these goals. Initiatives such as the Science-Based Targets initiative aid companies in communicating and committing to these objectives. Tools like Environmental Carbon Management help track their performance in reducing greenhouse gas emissions. Environmental information is disclosed through reports or initiatives like the Carbon Disclosure Project, and certification ensures that emission reduction actions meet specific standards.

In the Compensation category, companies indirectly reduce emissions by paying a price for their greenhouse gas emissions. One method involves emission credits trading. In the European Union, companies require allowances to limit their emissions, and these allowances can be bought or sold based on their needs. Another option is offsetting emissions by supporting projects that reduce pollution, such as planting trees or constructing cleaner power plants. These offset projects are not confined to specific regions. Overall, it entails companies taking responsibility for their emissions and actively seeking ways to diminish or compensate for them.

In conclusion, the collective efforts of businesses across various sectors underscore a shared commitment to addressing climate challenges and steering toward a sustainable future. As companies actively adopt and implement diverse strategies, the ongoing pursuit of eco-friendly practices within the energy, product, process, and waste management categories, among others, exemplifies a dedication to mitigating their environmental impact. This comprehensive and continuous approach, marked by innovation, efficiency, and a commitment to transparency, reflects the corporate world's acknowledgment of its role in climate change and the responsibility to act. By embracing these measures and contributing to a global shift towards sustainability, businesses are not only adapting to a changing world but are also becoming instrumental agents of positive change. Through ongoing initiatives and a steadfast commitment to environmental stewardship, companies are laying the foundation for a more sustainable and resilient future for generations to come.

Ajay Nagpure

Reference

Lewandowski, S. and Ullrich, A., 2023. Measures to reduce corporate GHG emissions: A review-based taxonomy and survey-based cluster analysis of their application and perceived effectiveness. Journal of Environmental Management, 325, p.116437.